In recent times, ALPACA Finance has suddenly come into the limelight in the crypto world, and the reason for this is the announcement of its delisting by Binance. While such news usually brings down the price of a token, ALPACA took the opposite direction and achieved a huge increase in just a few days. At the same time, people now want to know how the ALPACA Finance Price remains bullish even after the news of delisting. Although some experts are calling it the GameStop moment of the crypto market. But now everyone’s eyes are on whether ALPACA will be able to maintain its shine even after being removed from Binance? So let us know in detail the reason for its coming into the headlines.
Alpaca Finance made headlines after Binance announced its delisting
The crypto market was in a tizzy when the world’s largest crypto exchange, Binance, announced on April 24 that it was going to delist four tokens, including ALPACA, from its platform on May 2. Usually, when a token is delisted from a major exchange, its price drops sharply, but in ALPACA Finance, the exact opposite happened, and it made headlines.
However, Binance cited several reasons behind the delisting such as the lack of trading volume in the token, lack of developer activity and a decline in the overall quality of the network. ALPACA deposits and withdrawals were also stopped a few days after the delisting announcement and all spot trading pairs will also be removed on May 2.
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Initially, the price of the token fell a bit due to this news, but after this ALPACA took such a stance that surprised all the market experts. Within a few days, a huge surge was seen in it and it became a special example of how the price of a token can skyrocket even after delisting.
Short squeeze, funding rate, and supply shock also added to the excitement
The main reason for this unexpected surge in ALPACA Finance is a powerful short squeeze. After the news of delisting, many traders predicted that the price of the token would fall and opened short positions in large quantities. But when ALPACA Price started moving up, these short sellers had to buy the token to avoid their losses. This purchase pushed the price even higher.
Along with this, Binance changed its funding rates and the maximum funding cap was increased from ±2% to ±4% and the settlement interval was reduced from four hours to one hour. This further increased the financial pressure on short sellers.
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Meanwhile, the supply of ALPACA was also tightened. New minting of the token was stopped and about 35 million tokens (which is 18.6% of the maximum supply) were burned. This reduced the availability of the token in the market and the price increased with the increase in demand, due to which this token quickly came into the limelight.
Many reasons were also given behind the increase in Alpaca Finance Price
At the same time, some on-chain analysts and crypto experts have described this surge as market manipulation by whales. Positions worth about $50 million, of which $43 million belonged to short sellers, were liquidated. This incident is being compared to GameStop’s 2021 short squeeze, where large institutional investors had to give up in front of retail investors.
However, experts are now discussing how long this boom in ALPACA will last and what its market position will be after delisting from Binance.
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The recent situation of ALPACA Finance proves that the crypto market depends not only on technical indicators and news but also on investor sentiment, strategies, and unexpected conditions. Delisting from a well-known exchange like Binance is usually a negative sign for any token, but ALPACA broke that sentiment and set a new trend. At the same time, factors like short squeeze, changes in funding rate,s and supply shock have together made it a case study. However, it would be too early to make any Alpaca Finance Price Prediction about how long this boom will last.